2023-05-19-莱坊-Wrocław_city_attractiveness_and_office_market_Q1_2023_5页_5mb

Wrocław City Attractiveness and Office Market Report Q1 2023

City Attractiveness

Wrocław ranked highly in quality of life and investment potential. It placed 2nd in Poland's quality of life classification (ABSL 2022), achieved top positions in fDi rankings for business friendliness and education, and was 1st in Poland for IT ecosystem development. Key metrics include a population of 673,900 (forecast to reach 611,359 by 2030), low unemployment (1.6%), and strong infrastructure investments totaling PLN 1.08 billion in 2023, focusing on education (e.g., school renovations), environment (e.g., waste management), and culture. Budget allocations emphasized social support and sports, while attracting startups and maintaining a Moody’s A- rating. The city's appeal includes being a top 2 in Europe for IT hubs, with ongoing construction of green areas and public facilities.

Office Market Details

The existing office stock stood at 1.31 million sq m, maintaining Wrocław's second position in the Polish regional office market. In Q1 2023, supply under construction was 145,800 sq m, the highest in regional cities, with vacancy rates at 17.3%—second highest among cities like Kraków and Łódź. Asking rents ranged from EUR 10 to 16 sq m/month, remaining stable due to high construction costs. New supply deliveries contributed to a quarterly vacancy increase of 1.7 percentage points. Notable projects under construction include Quorum Office Park (71,000 sq m) and Infinity (22,000 sq m), with lease terms including rent-free periods and fit-out budgets. Transaction activity saw 36,200 sq m signed, representing 49% of demand from new deals.

IT Labor Market Trends

The Polish IT sector experienced high demand in 2023, driven by trends like big data, digitization, and cybersecurity. Key findings from a Michael Page survey include: promotions and career growth were highly desired, with 92% of employees valuing them; the four-day working week is gaining traction, potentially introduced in Poland; and skills in SAP, MS Dynamics, and IT security are in high demand, with IAM Specialists cited as hardest to fill. Almost half of employees never sought promotions, often due to manager responsibility or lack of confidence, underscoring the need for employer-provided training and mentorship. The Wrocław region, with its strong IT talent pool, benefited from these trends.

Key Contacts and Partnerships

Knight Frank.pl provided the report, offering valuation, advisory, and strategic consulting services for commercial real estate markets. The Wrocław Agglomeration Development Agency assisted with investment promotion. For further details, refer to their contact information or reports available at www.knightfrank.com.pl.